📝 Contract Assignments & Double Closings — Explained Simply
✅ What Is a Contract Assignment?
A contract assignment happens when a buyer (usually a wholesaler) puts a property under contract and then assigns their contractual rights to another buyer.
The wholesaler is NOT selling the property.
They are selling their right to purchase the property.
You—the end buyer—step into their place and close directly with the seller.
🔍 When You’re the Buyer: Who Are You Buying From?
✔️ In an Assignment
You are buying the property from the seller.
You are paying a fee to the wholesaler for the right to take over their contract.
Your role:
You close directly with the seller.
You fund the purchase price + assignment fee.
The wholesaler does not take title.
✔️ In a Double Closing
You are buying the property from the wholesaler.
Here’s what happens:
Wholesaler buys the property from the seller (A-to-B closing).
Immediately—same day or shortly after—you buy the property from the wholesaler (B-to-C closing).
Your role:
You close with the wholesaler, not the original seller.
The wholesaler takes temporary title.
Often used when assignment fees are large or the wholesaler wants confidentiality.
🧾 Assignment vs. Double Closing
Feature | Assignment | Double Closing |
|---|
Who do you buy from? | Seller | Wholesaler |
Does wholesaler take title? | No | Yes |
Do you pay assignment fee? | Yes | No, you pay a new purchase price |
Transparency? | Fee is visible | Fee is hidden |
Cost to wholesaler | Low | Higher (two closings) |
Commonly used when… | Fee is modest, no issues | Fee is large or seller objects |
🏡 How to Handle It When You’re the Buyer
⭐ 1. Ask for the full contract chain
You need:
Original purchase contract
Assignment agreement (if applicable)
All addenda or disclosures
Make sure the wholesaler has the contractual right to assign.
⭐ 2. Confirm who you’re closing with
Tell the title company:
This avoids last-minute confusion.
⭐ 3. Verify the numbers
If it’s an assignment:
If it’s a double close:
⭐ 4. Review title & access
Assignments sometimes miss:
Make sure:
⭐ 5. Know your risks
Assignments often offer:
As-is contracts
Non-refundable deposits
Tight timelines
Wholesalers often use investor-heavy contracts; read carefully.
📌 When Should You Be Cautious?
Wholesaler won’t provide the original contract.
Wholesaler ties up the deal but can’t legally assign.
Non-refundable deposits with no inspection period.
Title company says “this isn’t assignable.”
Seller doesn’t know the contract was assigned (red flag!).
🔄 Quick Summary
Assignment = You buy from the seller; wholesaler is paid a fee.
Double close = You buy from the wholesaler; they take title first.
Always review the contract chain, closing structure, and fees.